Lay's share falls from 51.1 to 49.5% between 2013 & 2015 as local players like Haldiram's gain steadily

The Euromonitor data shows that PepsiCo’s entry-level brand Uncle Chipps has dropped share over the three-year period between 2013-15.NEW DELHI: Lay’s, the snacks power brand from PepsiCo has lost share in the country to homegrown players over the past three years, reflecting the uphill task the multinational has in a market heavily dependent on pricing and trade discounting.

A study by global researcher Euromonitor shows that between 2013 and 2015, while Lay’s lost share from 51.1% to 49.5%, local players Balaji Wafers, Haldiram’s and Prataap Snacks (maker of Yellow Diamond chips) have steadily gained share every year.

Balaji Wafers, the second biggest player in the potato chips segment, has seen its share rise from 16.7% to 18.5% during the period, despite being concentrated primarily in the western states of Gujarat, Maharahshtra, Madhya Pradesh, Goa and Rajasthan. Besides potato chips, Balaji Wafers also sells Indian salty snacks and savouries.

The Euromonitor data shows that PepsiCo’s entry-level brand Uncle Chipps has dropped share over the three-year period between 2013-15.

A PepsiCo spokesperson said the firm would not be able to comment on specific market share data. But he said the company “strongly refutes” the notion that it lost market share in potato chips in 2015.

“We gained share in the potato chips category last year on the back of continued momentum on Lay’s, strong growth of Uncle Chipps, successful premium innovations like Lay’s Maxx and strong consumer engagement programmes around the World Cup. We believe that PepsiCo is further strengthening its position in the potato chips category,” the spokesperson said.Around three years ago, PepsiCo had initiated talks to buy majority stake in Balaji Wafers, the four-decade-old company based out of Rajkot, Gujarat. The company, however, was interested in offloading a minority stake. “We have risen from the grassroots, do not spend on marketing and invest heavily on technology and flavours,” Balaji Wafers MD Chandu Virani said.